⚠️ REJECTION ALERT: $SOMI REACHING OVERBOUGHT ZONE
The Blow-off Top — Positioning for the Pullback
TRADE SETUP: SHORT $SOMI
ENTRY ZONE: 0.3235 – 0.3333 (Current resistance area)
STOP LOSS: 0.3650 (Safety above today's peak and psychological barrier)
TARGET 1: 0.2750 (Retesting the previous consolidation breakout)
TARGET 2: 0.2500 (Major support and liquidity floor)
THE REASONING:
After a explosive rise of +64.95%, the currency $SOMI began to show signs of overbought on the smaller time frames. The price is now facing strong resistance at levels of 0.3333. Historically, such sharp increases are followed by quick profit-taking to retest breached support areas. We are waiting for confirmation of the reversal to target levels of 0.27.
PSYCHOLOGY:
Traders who entered at the beginning of the wave will now start converting their paper profits into real profits, which will generate sudden selling pressure. Entering a "short" here is a bet on the price returning to normal levels (Mean Reversion) after the unsustainable explosion.
Leverage: 2x - 3x (High volatility protection)
Risk Level: Very High 🔴
